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Scam guides

Pension scams

Top tips to stay safe

A pension scam often involves a fraudster targeting someone who has access to their pension and involves encouraging them to move the funds. Follow our top five tips to stay safe:

  1. Stay calm: if you get calls offering early access to your pension, don't feel rushed or pressured to respond.
  2. Don't commit: always seek independent financial advice before making decisions.
  3. Stop the call: if you feel pressured or if the caller won't take no for an answer, end the conversation. Don't be embarrassed to put the phone down.
  4. Listen to your doubts: if you think an offer sounds too good to be true, it probably is.
  5. Do your research: check if the person or company is legitimate by having a look at the financial services register or calling the Financial Conduct Authority.

How to spot pension scams

Scammers use different ways to target your pension. Here are the most common tactics:

  • Unexpected calls: there has been a government ban on cold calls regarding pensions so you shouldn't receive them unless you have asked them to.
  • Early access to funds: someone offering a way to access your pension before you retire could be a scam. Even if it's legitimate, early withdrawal could result in charges. Check with your pension provider using contact details on their website.
  • Investment opportunities: if someone calls you out of the blue offering you an investment scheme with attractive returns for your pension pot, then it’s likely to be a scam.
  • Pushy ‘advisors’: where you are pressured into making a quick decision about a ‘new’ scheme or encouraged to transfer your pension quickly.